INDUSTRY NOTE May 16, 2007 Robert C. Adams, CFA Digital Media Technology 415.962.4553,
[email protected] Wireless Technology Jason Tsai 415.318.7069,
[email protected] Erik Rasmussen 415.318-7074,
[email protected] The Battle Is On! Enabling the Digital Media Home Network FOR DISCLOSURE INFORMATION, REFER TO MONTGOMERY & CO.’S FACTS & DISCLOSURES ON PAGES 18 & 19 Digital Media Technology & Wireless Technology May 16, 2007 INVESTMENT SUMMARY The battle for the digital media The battle for superiority in the next great digital media market opportunity—the digital multimedia home network is on. home network—is on. And, like all great digital media markets, this one just makes good intuitive sense. Digital media consumers worldwide have a great appetite for digital content and they have a desire to move that content around the home. We believe that, necessitated by the continuing adoption of the digital video recorder (DVR) and other content storage technologies, accelerated by the rapid ramp of digital and high-definition television technologies, and enabled by the deep pockets of the telcos and cable operators, this market is poised for significant growth over the next several years and represents one of the largest-volume semiconductor opportunities in the digital media component space to date. The digital media networked The digital multimedia home network opportunity has been necessitated by the increasing ability of home—a function of recording... the consumer to record (or download) and display video content. Over the last several years consumers, especially in North America, have grown fond of recording content and storing it to hard drive solutions.